New regulations on standing charges for energy bills in the UK could potentially save customers of British Gas, OVO, EDF, EON Next, and Octopus Energy approximately £183 per year. The changes were proposed in a report by Future Energy Associates, which suggests that electricity and gas connection costs could be reduced by almost half, from £334.08 annually to £183.02.

Under these recommendations, electricity standing charges would drop by 32% from £219.42 to £149.17, while gas standing charges would see a 71% reduction, decreasing from £114.66 to £33.85 annually. Dylan Johnson, an analyst involved in the report, emphasized that these comprehensive changes could mitigate the negative distributional impacts previously identified.

Simon Francis from the End Fuel Poverty Coalition described standing charges as an unfair flat tax on all energy consumers. He noted that previous reforms were cautious due to potential impacts on households with high energy needs for medical purposes. He called for detailed analysis by Ofgem to ensure fair reform for such groups.

Fiona Waters, spokesperson for Warm This Winter, highlighted the ongoing energy crisis’s effects on bill payers, stating that energy bills have risen significantly over the past three years. She stressed the need for the next UK government to reduce bills, improve housing standards, and make the UK a leader in clean energy.

In related news, personal finance expert Martin Lewis has urged consumers to consider a new energy tariff, EDF Ensure, which features lower standing charges by £50 annually compared to other tariffs. He pointed out that for low energy users spending less than £100 per month, this could be a favorable option. He also discussed other options like the Eon Next tracker and Octopus Agile tracker, highlighting the benefits and potential risks associated with each.

These developments reflect ongoing efforts to address high energy costs amidst the broader context of the energy crisis in the UK.